When someone dies without leaving a will, their money and property are distributed according to a set of legal rules called the ‘intestacy’ rules. The same is true if there is a will but it is not legally valid, or parts of it are not effective. Dying without a will means that a person is ‘intestate’.
The rules state that the money and property (known as the estate) are distributed to the deceased’s family. It goes to their husband, wife, civil partner and other close relatives. So an ex-spouse is not entitled to inherit anything. Nor is an unmarried partner, even if they cohabited with the deceased for many years.
What Are The Intestacy Rules?
The spouse or civil partner of the deceased will receive all their personal property and belongings. They are also entitled to the first £322,000 of the estate. What happens to the remainder of the estate depends if there are surviving children, grandchildren or great grandchildren. If so, then the remainder is given 50% to them and 50% to the spouse/civil partner. If not, then the spouse/civil partner receives everything.
Let’s take the example of a husband and father of one child dying without a will. He leaves an estate worth £650,000. Under the intestacy rules his wife receives £322,000 plus £164,000, being the 50% of the balance of £328,000, a total of £486,000. The child receives the other 50%, or £164,000.
No Spouse/Civil Partner
If the deceased was not married or in a civil partnership, then their estate is inherited by their relatives. If there are children, it goes to them. But if not, then to the deceased’s parents. If the parents are not alive, then to siblings, nephews, nieces, and so on.
If the deceased has no blood relatives at all, then their estate is inherited by the Crown, i.e. the State.
What About Jointly-Owned Property?
Where someone owns property jointly with someone else, dying without a will often does not cause major problems. For example, where a couple jointly own their home, and their wealth is tied up in it.
If the deceased was intestate, then how their share of the property is inherited depends on one thing. That is whether they owned the property with the co-owner as joint tenants or tenants in common. If the co-owners were joint tenants at the time of the death, then the surviving partner will automatically inherit the other partner’s share of the property. So if a husband and wife are joint tenants of their home, then the wife will automatically inherit her husband’s share if he dies. That share will not form part of the estate. Nor will it count towards the £270,000 inherited by the wife under the intestacy rules referred to above.
However, if the co-owners were tenants in common, then the deceased’s share of the property does form part of their estate.
The same rules apply to joint bank accounts. If one partner dies, the other partner will automatically inherit all of the money.
At What Age Do Children Inherit?
If a child inherits under the intestacy rules, they only receive the inheritance when they reach 18 years of age (or marry or form a civil partnership under 18). Until then, trustees manage the inheritance on their behalf.
It is important to take advice about a particular set of circumstances. Call us today to discuss your situation and how we can help.
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